LONDON, Aug 25 (Reuters) - European shares are set to open lower on Tuesday, financial bookmakers said, after hitting their highest closing level in more than 10 months the previous day, with Wall Street ending flat after giving up earlier gains. Financial spreadbetters expected Britain's FTSE 100 .FTSE to open down 34 to 42 points, or as much as 0.9 percent, Germany's DAX .GDAXI to open 49 to 51 points lower, or as much as 0.9 percent, and France's CAC 40 .FCHI to fall 27 to 33 points in the open, or as much as 1.2 percent. "It's a reversal ... because of the weak close on Wall Street yesterday," said Matthew Buckland, a dealer at CMC Markets. Overnight, U.S. stocks ended the day barely changed as investors took a break from a four-day rally that lifted major indexes to 10-month highs. Wall Street initially charged higher, but a sharp gain in U.S. Treasury debt prices, which drove benchmark yields lower, triggered a sell-off in stocks. In Asia, Japan's Nikkei average .N225 was down 0.6 percent, while Chinese stocks .SSEC shed 3.5 percent. Investors showed little reaction to the White House saying that Federal Reserve Chairman Ben Bernanke would be reappointed for another term at the helm of the central bank. For more, click on [ID:nBERNANKE] The FTSEurofirst 300 .FTEU3 index of top European shares rose for the third straight session on Monday, up 0.9 percent. U.S. house prices data -- Case Shiller home prices index for June at 1300 GMT and U.S. home prices for June at 1400 GMT -- and U.S. consumer confidence will be in focus later in the day.

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